Altcoin season is approaching, according to Finbold, as the market shows clear signs of shifting away from Bitcoin. The altcoin season index from Blockchain Center reached 63 on Tuesday, with 75 traditionally marking the full onset of gains. This shift indicates growing investor interest in altcoins, which are currently outperforming digital gold.

Altcoin season and Ethereum in the lead

The biggest driver is Ethereum, which is gaining institutional attention. BlackRock reported net inflows of $12.97 billion, according to Farside.

Additionally, major players are actively buying – on September 2, a report from Blockchain News recorded a purchase of 5,553 ETH worth approximately $24.44 million in just 40 minutes. Since August 11, the same entity has purchased a total of 18,447 ETH worth $81.5 million, at an average price of $4,417. This trend suggests that Ethereum may become a leader in the coming weeks.

What about small altcoins?

Reports about the start of the altcoin season are everywhere, yet most altcoins are still at the bottom. The trend is currently driven only by a handful of large-cap coins such as ETH, XRP, or BNB. Low-cap cryptocurrencies are far from their historical highs. However, this situation could change if profits from these large coins move into smaller projects. Such a shift could also signal a potential end of the current growth cycle.

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Bitcoin and its September challenges

On the other hand, Bitcoin traditionally faces a weak September. Historical data from Coinglass shows it often declined during this period. For instance, in 2020 it dropped 8%, in 2021 by 7.3%, and in 2022 by 3.10%. Currently, according to TradingView, it trades around $110,500, which is 10% below its August high of $124,500.

Although September is historically the least profitable month of the year, this year could be different. There are years when Bitcoin experienced significant gains in September, so past weakness does not mean profits are impossible.

The altcoin season is therefore becoming increasingly visible, with Ethereum potentially strengthening its position while Bitcoin navigates between short-term weakness and potential growth.